New Tax Ruling for Canadian Airbnb Hosts: What You Need to Know

A recent Tax Court of Canada ruling could affect Airbnb hosts and other short-term rental property owners in Canada. This ruling requires condo owners who regularly rented their unit on Airbnb to pay a 13% HST tax on the property’s sale, treating it as a commercial rather than a residential property.

While the 13% HST has always applied to commercial property sales, residential properties have been exempt. This new decision sets a precedent, raising questions about how similar properties may be taxed in the future if used consistently for short-term rentals. Let’s take a closer look at this ruling and how hosts can plan ahead.

What This Means for Short-Term Rental Owners

If you regularly rent your property on platforms like Airbnb or VRBO (90 percent threshold), there’s a possibility it could be classified as commercial rather than residential, impacting your tax obligations if you decide to sell. While this ruling doesn’t create a new tax, it suggests that properties used primarily as short-term rentals may no longer be seen as “residential” and could be subject to HST on the sale price.

This decision could lead to larger financial implications for those planning to sell high-value properties. In light of this, short-term rental owners should consider factoring this potential tax into their long-term planning.

Tips for Managing Guest Access and Security

If you are a property owner or an Airbnb host, you may want to maintain a secure and organized guest access. Keeping extra key fobs or spare keys can help simplify check-ins and ensure smooth entry for guests, especially for those managing multiple properties.

Here’s how we can help at MiniFob and FobToronto:

• Quick Key and Fob Copies: For a fast, efficient solution, spare copies can often be made on the spot, saving time.
• Reliable Access: Copies come with a lifetime guarantee, helping you avoid future issues.
• Bulk Options: For those managing several properties, bulk pricing on multiple fob copies (10+) can be a helpful, cost-effective choice.

Find Out if Your Key, Key Fob or Garage Remote are Compatible

Want to get a backup fob or key for your rental property? Visit our Key Fob Checker page to see if your fob or remote is compatible with our service. To find a location near you, check our Store Locator for quick access.

Final Thoughts

This recent ruling on short-term rental properties could have significant implications for Airbnb hosts across Canada. By planning ahead, staying informed, and investing in secure, affordable access options, property owners can continue to manage successful rentals while being prepared for any future developments.